Federal Reserve Building in Washington D.C. – Illustration (Photo credit: DonkeyHotey)

This is an excellent article from the FT. Check it out!

Further easing ‘warranted soon’, Fed says – FT.com.

Many regular Fed watchers will be debating yesterday’s Fed news for some weeks. It seems that the language was unusually direct in suggesting that it was appropriate for the Fed to take additional measures soon. Now speculation will turn to the type and quantum of the intervention from the Fed. One interesting bit of news was that the Fed might follow the Bank of England‘s plan to encourage banks to lend to households and businesses.

So key questions:

1. What will the Fed do?
2. When will the Fed do it?
3. What are the political implications for the US Presidential election?
4. How will it influence US Government policy?
5. How will markets respond?

What do you think?